According to iefimerida.gr, Anguilla has transformed from a tourism-dependent Caribbean territory into an unexpected beneficiary of the global artificial intelligence revolution. The British overseas territory, home to just 15,000 residents, earned approximately $39 million in 2024 from selling .ai internet domain names. This windfall represents nearly a quarter of the government's total annual revenue.

The island's fortunes changed dramatically after ChatGPT launched in November 2022. Domain registrations surged from 144,000 in 2022 to over 850,000 by 2025. Tech entrepreneur Dharmesh Shah recently paid $700,000 for the premium domain you.ai, demonstrating the exceptional value these digital addresses now command. Premier Ellis Webster announced in December 2024 that domain revenue exceeded initial budget projections by $41 million.

Why This Matters

The revenue surge provides essential economic diversification for Anguilla, which previously relied heavily on tourism for 37 percent of its GDP. International Monetary Fund analysis shows the territory now generates 20 percent of government revenue from domain sales, compared to just 5 percent in previous years. This income stream proved resilient during Hurricane Irma and the COVID-19 pandemic when tourism collapsed.

Government officials project domain revenue will stabilize at approximately 15 percent of total income annually. The funds enable critical infrastructure investments including airport development, hurricane-resistant healthcare facilities, and renewable energy projects. WebProNews reports that Anguilla's 2025 budget estimates show continued growth to 132 million Eastern Caribbean dollars this year.

Industry Implications

Anguilla's success reflects broader changes in how small island nations monetize digital assets. The territory charges approximately $140 for two-year domain registrations, with renewal rates near 90 percent ensuring steady future income. Unlike other countries that licensed their domains to foreign companies, Anguilla retained direct control and receives the majority of revenues.

The model contrasts with Tuvalu's approach to its .tv domain. Wikipedia shows Tuvalu generates around $7 million annually from .tv royalties, representing 8.4 percent of government revenue in 2019. However, Tuvalu initially locked itself into a less favorable 50-year agreement with foreign operators. Small Island Developing States face particular economic vulnerabilities due to their remote locations and limited resources, making such digital revenue streams valuable for economic stability.

The artificial intelligence sector's continued expansion suggests sustained demand for .ai domains. Major companies like Google use google.ai for their AI services, while countless startups seek similar branding. This trend provides Anguilla with a competitive advantage in the global digital economy despite its small size and geographic isolation.

Further Reading

For deeper insights into global adoption trends, our Alternative Financial Systems Index tracks regulatory frameworks and adoption metrics across 50 countries. The comprehensive database examines how nations adapt to emerging digital technologies and revenue opportunities.